Is Someone Depending on You for Care?

By Cindy Kula, CPA, CFP 

Many of us struggle everyday just to make certain we are financially sound and have our estates in order.  What about Mom and Dad?   Or, Aunt Mary?  Many elderly are depending on the 55+ generation for guidance and/or care. 

Over the years, I followed the philosophy if I needed to review my financial items or permanent documents, I knew that my Mom and Dad needed to review theirs also.   

Discussions with our elderly relatives should always begin sooner rather than later.  It is much easier to talk about life-changing decisions when there is no pressure to do so. 

The first step to begin the process is to gather copies of all permanent documents.  You should at this point gather:

• Wills and trusts
• Powers of attorney
• Advance directives
  - Living Will 
  - Durable Power of Attorney for Health Care
• Insurance policies
• Basis of any assets they may have inherited
• A list of all advisors and phone numbers
• A list of all assets and liabilities (a current tax return will help with this)

You will find a downloadable Excel file to document this information as well as other worksheets on our website: http://www.walthall.com/practice_groups/financial_planning .

Reviewing these documents is your next step.  It is important to understand what your relatives want you to know, and what they don’t.  If you are the Executor/Executrix, it is advisable to understand the estate situation along with any undocumented wishes. 

An often overlooked task is the review of the Medicare Part D option for prescription drugs.  These plans change annually and as a result, the options must be reviewed annually.  The program at www.medicare.gov  allows you to maintain and save a list of medications, and review and choose the most suitable plan.  Adding this decision to the energy choice decisions, the elderly are justified in feeling overwhelmed.

Although deathbed planning can be done, do you want to use your final moments with your loved ones to address financial questions? 

For more information and upcoming seminars please visit our website at http://www.walthall.com/news .